EGM set to list four products

Three more community banks are lined-up for listing at Enterprise Growth Market (EGM), the alternative market of the Dar es Salaam Stock Exchange, between now and next June next.

One of the banks, Mwanza Community, is current selling its five million shares at initial stage, seeking to raise 2.75bn/-. The bank expects to list at the EGM mid next month.

The Core Securities Chief Executive Officer, Mr George Fumbuka (pictured) named other community banks on the list as Mbeya Community Bank -- a new entrant in banking sector -- and Mbinga Community which opened doors ten years ago.

“Mwanza (Community Bank) IPO is ongoing and expected to be listed next month…while Mbeya and Mbinga are finalizing listing procedures,” he told the 'Daily News'.

Another oil and gas exploration firm, Swala Oil and Gas, is also expected to sell shares and list on EGM between December and January. 

Its prospectus awaits Capital Markets and Securities Authority approval. 

Swala expects to release 3.75 million shares to the local communities in its areas of operations through EGM.

The news of community banks lining up to raise capital through EGM, follows the successful listing of another community bank—Maendeleo—which it was oversubscribed by 1.2 million shares early this month.

The opening of EGM, the second window of DSE that has less stringent condition of listing, has been termed as the catalysts for start-up and refinancing enterprises to boost their capital needs.

Also, according to the Bank of Tanzania directive, old or newly formed community banks that want to mobilise funds from public should obtain a permit from CMSA.

The move is aimed at safeguarding shareholders rights and deepening capital markets by attracting more players at the equity market - the Dar es Salaam Stock Exchange (DSE).
Source: Daily News, reported by Abduel Elinaza from Dar es Salaam, Tanzania